Leasing License Practice Exam

What type of entity can have access to escrow accounts?

1. Clients

2. Only brokers

3. Accountants

4. Management companies

The correct answer is: Only brokers

In the context of real estate transactions and escrow accounts, brokers typically serve as the primary entity with access to these accounts. Escrow accounts are established to hold funds securely until certain conditions of a transaction are satisfied, such as the completion of a sale or the fulfillment of lease terms. Brokers are responsible for managing these funds to ensure that transactions are conducted fairly and in compliance with legal obligations. While clients may benefit from the escrow arrangement whereby their funds are held, they do not have direct access to the escrow accounts. Accountants and management companies may be involved in financial transactions and record-keeping, but they do not traditionally hold direct access to the funds in escrow unless specifically authorized in a particular situation or under certain agreements. Therefore, it is the brokers who are primarily tasked with overseeing escrow accounts in real estate transactions.